Provision for Credit Losses
Ready Capital Provision for Credit Losses decreased by 52.7% to $70.91M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 164.7%, from -$109.57M to $70.91M. Over 4 years (FY 2021 to FY 2025), Provision for Credit Losses shows an upward trend with a 81.3% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase suggests deteriorating credit quality or a more conservative risk outlook, while a decrease suggests improved borrower health.
Detailed definition
This is an estimate of the potential losses the company expects to incur on its loan portfolio due to borrower defaults....
Peer comparison
Standard for financial institutions; peers in commercial real estate lending will have highly correlated provisions based on economic cycles.
provision_for_credit_losses_cfHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $5.52M | $1.58M | $961.00K | $1.54M | -$4.39M | $3.43M | $33.86M | -$6.73M | $19.43M | -$12.15M | $6.69M | -$26.54M | -$18.87M | $53.17M | $285.01M | -$109.57M | $8.64M | $37.98M | $149.99M | $70.91M |
| QoQ Change | — | -71.4% | -39.1% | +60.5% | -384.7% | +178.2% | +886.9% | -119.9% | +388.5% | -162.5% | +155.0% | -496.9% | +28.9% | +381.7% | +436.1% | -138.4% | +107.9% | +339.5% | +294.9% | -52.7% |
| YoY Change | — | — | — | — | -179.6% | +117.3% | >999% | -536.7% | +542.5% | -454.2% | -80.2% | -294.2% | -197.1% | +537.5% | >999% | -312.8% | +145.8% | -28.6% | -47.4% | +164.7% |
Business Segments — Lmm Commercial Real Estate
| Segment | Q3 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q2 '24 | Q3 '24 | Q1 '25 |
|---|---|---|---|---|---|---|---|---|
| Lmm Commercial Real Estate | $7.87M | — | — | — | $6.59M | -$14.41M | $49.24M | -$117.94M |
| Small Business Lending | $200.00K | $1.40M | $2.01M | $2.31M | $96.00K | -$4.46M | $3.93M | $8.37M |
| Sbc Lending And Acquisitions | $3.23M | -$8.13M | $17.42M | -$14.47M | — | — | — | — |
| Total | $3.43M | -$6.73M | $19.43M | -$12.15M | $6.69M | -$18.87M | $53.17M | -$109.57M |
Lmm Commercial Real Estate, Sbc Lending And Acquisitions, Small Business Lending were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.
Business Segments — LMM Commercial Real Estate
| Segment | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|
| LMM Commercial Real Estate | -$117.94M | $5.15M | $30.98M | $143.54M | $66.52M |
| Small Business Lending | $8.37M | $3.49M | $7.00M | $6.45M | $4.38M |
| Total | -$109.57M | $8.64M | $37.98M | $149.99M | $70.91M |
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is Ready Capital's provision for credit losses?
- Ready Capital (RC) reported provision for credit losses of $70.91M in Q1 2026.
- How has Ready Capital's provision for credit losses changed year-over-year?
- Ready Capital's provision for credit losses increased by 164.7% year-over-year, from -$109.57M to $70.91M.
- What is the long-term trend for Ready Capital's provision for credit losses?
- Over 4 years (2021 to 2025), Ready Capital's provision for credit losses has grown at a 81.3% compound annual growth rate (CAGR), from $8.05M to $87.04M.
- What does provision for credit losses mean?
- The estimated expense set aside to cover potential future loan defaults.